UE-GE talks failure 'terribly disappointing'

By SEAN McCRACKENsean.mccracken@timesnews.com

June 24, 2013 12:35 AM

Scott Duke, right, president of Local 506 of the United Electrical Radio and Machine Workers of America greets GE workers as they leave the plant to attend a rally outside GE Transportation in Lawrence Park Township on April 16. The company has announced plans to eliminate 950 jobs. JACK HANRAHANERIE TIMES-NEWS

By SEAN McCRACKENsean.mccracken@timesnews.com

June 24, 2013 12:35 AM

A midnight deadline for GE Transportation and Local 506 of the United Electrical, Radio and Machine Workers of America officials to negotiate a deal to save some of the 950 jobs the company expects to cut came and went Saturday with no agreement in place.

Hours later, area officials were calling the impending cuts and the two sides' inability to reach a deal a devastating blow for the Erie area.

"The news that the bargaining window has expired without an agreement is terribly disappointing," said state Sen. Sean Wiley, of Millcreek Township, D-49th Dist., in a written statement. "It is unfortunate that after this lengthy negotiation period, UE Local 506 and GE Transportation could not come to a compromise that might have saved hundreds of jobs and avoided hardship for individuals and families."

Barbara Chaffee, president of the Erie Regional Chamber and Growth Partnership, said the news is "sad and disappointing" for less-tenured employees at the Lawrence Park Township plant who expected to be at the company for decades and now will be unemployed.

UE Local 506 President Scott Duke acknowledged Saturday that 2,500 of the union's 3,500 members have less than 10 years of experience at the company.

Chaffee said she would have liked to see GE management's best offer taken to a union membership vote instead of being rejected by leadership.

And beyond the upcoming job losses, Chaffee said she worries the lack of change at the plant could work against Erie's economic future.

"Our fear is one day we'll realize we missed an opportunity for this plant to become competitive," Chaffee said.

Chaffee's comment echoes assertions from GE Transportation officials who have said the Lawrence Park plant operates less efficiently than a much newer site in Fort Worth, Texas, and competitors like Caterpillar.

Company officials announced April 9 the plans to eliminate 1,050 jobs -- 100 management and 950 within the union -- amid concerns over slowing orders and productivity at the facility.

The union's contract calls for a 60-day window to reach a deal to save some or all of the jobs up for elimination.

That window was extended two weeks, but the two sides still couldn't reach a compromise.

When negotiations ended late Saturday night, the company was offering to save 375 union jobs in exchange for a two-year wage freeze and work-rule changes. The union offered at least two counterproposals Saturday night. Union leaders said their final proposal would have saved the company $26 million.

Even with the deadline past, at least one local official -- County Executive Barry Grossman -- remained hopeful that those jobs could potentially be saved.

"I'm obviously disappointed there was no agreement," Grossman said. "But from what I've heard, on Monday the two negotiation teams' leaders are going to meet. It doesn't look like they walked away from the table saying 'this is over.'"

Grossman said at the end of the negotiation window the two sides were dealing with things like wage freezes and guarantees of saving jobs, which were off the table completely in April and May.

Grossman was equally optimistic about GE Transportation's long-term future in the area.

The cuts would leave the plant with about 4,400 employees, which Grossman said is comparable to employment numbers at the plant in the early 2000s.

"The only thing I've never believed is GE wants to leave Lawrence Park," he said. "I do believe they want to reshape it, though."

In a statement sent out Sunday, Local 506 President Duke acknowledged the planned meeting for Monday and said the union will "evaluate further legal and/or labor actions."

"We helped GE make billions last year and we are on track to do the same this year only to find our work ethic and productivity under attack," Duke said. "The statements made early on about our time on product by management appear to us to have been calculated to poison the well."

Duke's statement also praised the professionalism of the GE bargaining team and said the union will "keep the lines of communications open."

Asked for comment Sunday, GE Transportation officials sent a statement of their own, saying their final offered included "significant investment in (the) Erie facility."

"We're disappointed with the outcome, but are confident we made every effort to bargain in good faith and achieve an agreement," GE Transportation Chief Executive Lorenzo Simonelli said in a written statement. "We remain proud that GE offers high-quality jobs in Erie with strong wages and good benefits."

It is unclear from both sides what the next step will be, although Simonelli said in April that layoffs will take place in October.

How those layoffs take place will likely be affected by the number of union employees who retire -- especially since early retirements are likely. There also will be reshuffling for employees who remain, with long-time employees bumping into jobs held by those with less experience.

SEAN McCRACKEN can be reached at 870-1714 or by e-mail. Follow him on Twitter at twitter.com/ETNmccracken.